CHAPTER - XI
COLLECTION AND RECOVERY
A.-Deduction at source
Liability to deduct tax at source
195. (1) Any person responsible for making specified payment shall, at the time of the payment, deduct income tax therefrom at the appropriate rate
(2) The specified payment, referred to in sub-section (1), shall be the payment of the nature specified in Column 2 of-
(a) the Third Schedule, if the deductee is a resident; and
(b) the Fourth Schedule, if the deductee is a non-resident.
(3) The appropriate rate referred to in sub-section (1) shall, in respect of a specified payment, be the rate specified in the corresponding entry in Column 3 of-
(a) the Third Schedule, if the deductee is a resident; and
(b) the Fourth Schedule, if the deductee is a non-resident.
(4) However, the appropriate rate referred to in sub-section (1) shall, in a case where the deductee has failed to furnish his Permanent Account Number to the deductor, be the higher of the following rates:-
(a) twenty per cent; and
(b) the rate specified in sub-section (3).
